Many organizations have said they are pulling out or suspending operations in Russia after its invasion of Ukraine, from energy producer Shell Plc to carmaker Hyundai Motor Co to PwC, a worldwide professional services firm.
Coming up next is a look at how insurance and international arbitration might soften the blow for those organizations, which stand to lose billions of dollars:
Does Standard Insurance Provide Coverage?
No, but organizations can purchase political risk as an add-on to exchange credit, property and aviation insurance. It covers government seizures of property and forced abandonment, cancellations of government licenses for procedures such as for example mines and the inability to convert forex. The insurance typically covers long-term energy or infrastructure projects, but can be purchased by other types of businesses. Policies are confidential, insurance authorities said, and disputes are resolved in private arbitration.